WETHERSFIELD, May 16, 2013 - On a seasonally adjusted basis, preliminary estimates from the U.S. Bureau of Labor Statistics (BLS) indicate Connecticut businesses added 6,300 jobs to nonfarm payrolls in April 2013. The private sector added 5,800 workers and the public sector increased 500 positions. The state’s unemployment rate remained unchanged at 8.0% last month. Connecticut has now gained 9,600 jobs in the first four months of the year for a 2,400 average monthly growth pace in 2013.

“Though our monthly data can be volatile, Connecticut’s job growth tempo picked up considerably last month,” said Andy Condon, Director of the Office of Research. “The state appears to be experiencing a solid and more typical spring seasonal job buildup. Seven of ten major industry supersectors participated in job gains in April. Annualized job growth is now back above 10,000.

Nonfarm Jobs: Nonfarm employment in Connecticut for April continued to improve and increased by 6,300 additional jobs or 0.4% growth over the month. Seven of ten major industry supersectors posted job gains in April, and only two exhibited employment declines. The manufacturing component was unchanged. The state has added 10,800 positions (0.7%) since April 2012 and is now at a new employment recovery highpoint of 1,649,300 jobs. This is a big swing from the just 1,000 (+0.1%) annualized gain measured from March 2012 to March 2013 in the prior release.

Recession Recovery: Connecticut has now recovered 57,500 positions or 47.4% of the 121,200 seasonally adjusted total nonfarm jobs that were lost in the state in the March 2008 to February 2010 employment recession. The jobs recovery is now 38 months underway. The private sector has performed better and has restored 65,000 (57.0%) of the 114,000 private jobs that were lost during the same employment downturn. This month marks the highpoint in the nonfarm employment recovery in the state at 1,649,300.

Labor Market Areas (LMAs): Two of the six major Connecticut Labor Market Areas (LMAs) experienced job increases in April 2013, while four of the major state LMAs recorded declines. However, the two increasing LMA’s were the two largest employing regions in size in the state and posted substantial gains. The second largest LMA in the state, the Bridgeport-Stamford-Norwalk LMA (4,200, 1.0%, considered statistically significant), grew the most and the largest LMA, the Hartford-West Hartford-East Hartford LMA (2,000, 0.4%), also came through with strong job growth over the month. The four other smaller LMA’s tallied job losses that were 300 jobs or less and were as follows: Waterbury LMA (-300, -0.5%), Danbury LMA (-300, -0.4%), Norwich-New London LMA (-200, -0.2%), and New Haven LMA (-100, -0.04%). The major Connecticut LMAs are estimated and seasonally adjusted independently from the statewide numbers.

Hours and Earnings: The private sector workweek, not seasonally adjusted, averaged 33.5 hours in April 2013, down eight-tenths of an hour from the April 2012 figure (34.3, -2.3%). The year ago April hours worked estimate may have been overstated from the record warm weather last year. Average hourly earnings at $28.15, not seasonally adjusted, were down thirty-five cents, or -1.2% from the April 2012 hourly pay estimate. The resulting average private sector weekly pay was estimated at $943.03, down $34.52, or -3.5% over the year. Information for the manufacturing production workweek and earnings can be found in the table section of this release under the “Hours and Earnings” data category. Year-to-year change in the Consumer Price Index for All Urban Consumers (CPI-U, U.S. City Average) in March 2013 was 1.5%.

Higher employment levels were recorded in both the private (+5,800, 0.4%) and government (+500, 0.2%) sectors.  Total private sector employment has increased 11,700 positions (0.8%) since last April 2012.

In April, industry supersector employment gains were led by construction and mining (2,000, 3.7%).  This supersector has shown two straight months of healthy job increases above 2,000 and the strong spring seasonal buildup bodes well for the construction industry going forward.  The trade, transportation, and utilities supersector (1,500, 0.5%) bounced back from a large loss last month that may have been related to the early Easter occurring in March this year.  The education and health services (1,400, 0.4%) supersector continued consistent job gains last month.  The leisure and hospitality (900, 0.6%) supersector posted its seventh straight monthly gain in a row going back to October.  Restaurants and accommodations are heading the growth in this supersector and are very strong over the year (6,800, 5.8%).  The government supersector contributed 500 positions (0.2%) to overall job gains last month and the increase was entirely attributable local government employment (1,200, 0.8%) as state government declined (-700, -1.0%) and the federal government was unchanged.  A financial activities supersector gain (400, 0.3%) in April came as U.S. financial markets reached all-time high levels.  And the professional and business services (200, 0.1%) supersector recorded a slight job gain driven by large offsetting moves within the supersector.  Professional, scientific, and technical services employment fell  (-2,000, -2.3%), offset by an increase in administrative and support services (2,100, 2.5%, temporary employment measured here). Management of companies and enterprises (100, 0.3%) was slightly positive as well.

The two declining supersectors in April only were only off slightly led  by other services (-500,  -0.8%).  The information supersector was only marginally lower (-100, -0.3%).  The manufacturing supersector was unchanged in April.

Since April 2012, five of Connecticut’s ten major industry supersectors have increased jobs while four industry supersectors have declined.  The other services supersector was unchanged over the year. 

Job Growth OTY (magnitude)                                        Job Lose OTY (magnitude)

1.) Leisure and Hospitality (5,900, 4.2%)                          1.) Manufacturing (-2,500, -1.5%)

2.) Education and Health Services (5,700, 1.8%)               2.) Financial Activities (-2,200, -1.7%)

3.) Construction and Mining (3,900, 7.5%)                         3.) Government (-900, -0.4%)

4.) Trade, Transportation, and Utilities (900, 0.3%)            4.) Information (-400, -1.3%)

5.) Professional and Business Services (400, 0.2%)         

The April 2013 average weekly initial unemployment claims for first-time Connecticut filers increased over the month by 502 (+11.4%) to 4,900, and were slightly higher by 56 claims (+1.2%) from last April (4,844). The seasonally adjusted monthly average weekly initial unemployment claims level can spike up in April because of school vacation breaks and tax season completion.

The nonfarm employment estimate, derived from a survey of businesses, is a measure of jobs in the state; the unemployment rate, based on a household survey, is a measure of the work status of people who live in Connecticut. Overall, as the national and state economies recover, volatility in monthly numbers can be expected. Additionally, changes in methodology that culminated in March 2011 with the U.S. Department of Labor, Bureau of Labor Statistics assuming complete responsibility for estimating all states’ monthly nonfarm job counts, have contributed to the month-to-month variability in the numbers. Jobs estimates are best understood in the context of their movement over several months rather than observed changes in a single month’s estimate.